Economy - overview:
Afghanistan's economic outlook has improved significantly over the past two years because of the infusion of over $2 billion in international assistance, dramatic improvements in agricultural production, and the end of a four-year drought in most of the country. However, Afghanistan remains extremely poor, landlocked, and highly dependent on foreign aid, farming, and trade with neighboring countries. It will probably take the remainder of the decade and continuing donor aid and attention to raise Afghanistan's living standards up from its current status among the lowest in the world. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs, but the Afghan government and international donors remain committed to improving access to these basic necessities by prioritizing infrastructure development, education, housing development, jobs programs, and economic reform over the next year. Growing political stability and continued international commitment to Afghan reconstruction create an optimistic outlook for maintaining improvements to the Afghan economy in 2004. The replacement of the opium trade - which may account for one-third of GDP - is one of several potential spoilers for the economy over the long term.

GDP - real growth rate:
29% (2003 est.)
: note: this high growth rate reflects the extremely low levels of activity between 1999 and 2002, as well as the end of a four-year drought and the impact of donor assistance

Debt - external:
$8 billion in bilateral debt, mostly to Russia; Afghanistan has $500 million in debt to Multilateral Development Banks (2004)

Economic aid - recipient:
international pledges made by more than 60 countries and international financial institutions at the Tokyo Donors Conference for Afghan reconstruction in January 2002 reached $4.5 billion through 2006, with $1.8 billion allocated for 2002; another $1.7 billion was pledged for 2003.

Currency:
afghani (AFA)

Currency code:
AFA

Exchange rates:
afghanis per US dollar - 50 (2003), 50 (2002), 3,000 (2001), 3,000 (2000), 3,000 (1999)
: note: in 2002, the afghani was revalued and the currency stabilized at about 50 afghanis to the dollar; before 2002, the market rate varied widely from the official rate

Fiscal year:
21 March - 20 March

NOTE: The information regarding Afghanistan on this page is re-published from the 2004 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Afghanistan Economy 2004 information contained here. All suggestions for corrections of any errors about Afghanistan Economy 2004 should be addressed to the CIA.